10 ways to save on a tight budget, even if you are in debt


    How to save on a tight budget | National debt relief

    At some point we all live on one tight budget. Perhaps you have a job outside of college with a modest salary that barely covers your rent Student Loans Payments. Or maybe you need to tighten the wallet after the birth of your first child.

    But even when money is tight, you can still find ways to save. That can be true even if you are struggling to pay off Credit card debt.

    “Patience is the key to saving and budgeting anytime, even when you are in debt, ”said Matt J. Goren, Certified Financial Planner and Assistant Professor of Financial Planning at the American College of Financial Services in King of Prussia, Pennsylvania.

    “The hardest part of this journey is being patient and staying focused,” he says.

    That’s how it’s donesave money Even if you are in debt

    When money is tight, there are two ways to get your hands on more green: spend less or make more. Here are 10 ways you can achieve your goal Savings goals – even if you are in debt.

    1. Rank your expenses, then reduce yours spend money

    “Creeping debts are often the result of little” monthly expenses that accumulate over time. To get a better grip on these costs, make a list, ”says Goren.

    “The first step is to sort your spending from highest to lowest each month,” he says. “Cuts in these types of spending will have a big impact.”

    For example, if you pay $ 100 a month in cable television bills, you can save $ 1,200 next year if you eliminate those bills.

    “Here, cuts are usually made once and then get stuck,” says Goren.

    2. Ask about a raise

    One of the quickest ways to get more cash is to ask for a raise or a promotion. And maybe there is no better time to ask than the present.

    “The job market is very tense at the moment,” says Goren. “This is good news for workers looking for a higher salary.”

    3. Find a side appearance

    If you can’t negotiate a raise, look for additional sources of income. After a year of downsizing in connection with the pandemic, there are suddenly vacancies everywhere. At the beginning of August it was 10.1 Millions of vacancies; a new US record.

    That means there is a lot of extra work to be done if you want to make more income. A part-time job in the evening and on weekends can go a long way toward saving.

    Or you could take a more entrepreneurial approach and start your own side business. For example, you can resell collectibles on eBay or clothing on Poshmark. Or start a dog walking service in the neighborhood. The possibilities are endless.

    4. Rent out part of your home

    When you have more space in your home, turn it into a rental apartment and start looking for tenants. Or convert a backyard unit into an Airbnb oasis that brings steady income year round.

    You can even rent out an empty garage as storage space for someone in your neighborhood who has too much and doesn’t have space for it.

    5. Get rid of as much debt as possible

    The best way to address debt is to pay it off as soon as possible. Even if you can’t pay off everything, pay off what you can ASAP. Once you get rid of your debt, you can free up extra cash that you can spend on one saving account.

    If your budget is really tight, consider negotiating with your lenders to extend your repayment deadline and reduce monthly payments. You can also enlist the help of a nonprofit loan advisor.

    Or, work with a debt settlement company who can help you get rid of some of your obligations. Just make sure to carefully research every debt settlement company you use so that you understand the risks and rewards. Look for a company that charges low fees and doesn’t make unrealistic promises about what they can do for you.

    6. Buy better insurance plans

    Once you’ve decided on an insurance policy to cover your car, house or apartment, it can be tempting to just stick with the same policy year after year. But financial experts consider this to be a mistake.

    At least once a year, you should compare tariffs to see if you can get a better deal on your coverage. That could make you hundreds of extra dollars every year.

    7. Eat at home

    Home cooking is infinitely cheaper than eating in a restaurant or ordering to take away. If you work in an office, prepare your lunch at home to bring with you to work. If you enjoy eating out, try making this an occasional special treat rather than a regular occurrence.

    You just won’t save money by shopping at your local grocery store and prepare your own meals, but they are probably healthier for you.

    8. Contribute to your 401 (k) and your health saving account (HSA)

    Contributing to a 401 (k) plan is a great way to grow short-term savings while securing your long-term financial future.

    Every dollar You put in a 401 (k) is tax privileged. That means you don’t have to pay tax on the money today, so you can invest more fortune in savings that will grow for many years before you owe Uncle Sam anything.

    Also, many employers adjust employee 401 (k) contributions up to a certain amount. That brings even more money to your savings pile.

    If you have a high deductible health insurance plan and are eligible to contribute to preventive healthcare saving account, Do it. An HSA is one of the best ways to save. The money you add to your account is tax deductible, it grows tax-free, and you don’t pay tax on withdrawals when you use the money on qualified healthcare expenses.

    That combination is hard to beat.

    9. Find ways to save on your rent or mortgage

    Chances are, your rent or mortgage payment is the single biggest expense you have to bear from month to month. So reducing these costs can go a long way toward increasing your savings.

    If your rent is too expensive, try to find something cheaper after your lease expires. “Moving from a $ 1,500 to a $ 1,200 apartment saves about $ 3,600 a year,” says Goren.

    If you have a mortgage see if you can refinance and lower your monthly payment.

    Goren acknowledges that cutting those expenses can be more difficult than simply cutting your cable TV bills, but adds that if you can find ways to cut your housing bills, “those cuts can save even more.”

    10. Adjust your payroll deductions

    Getting a fat tax refund every spring can be counterproductive. When you are in debt, it makes little sense for the government to take too much of your money all year round just so Uncle Sam can pay you back at tax time.

    Instead, adjust your paycheck withholding so that less money goes to the government over the course of the year. The IRS has one Tax Withholding Estimator who can help you determine if this is the right course for you.

    When the numbers add up, adjust your withholding tax deduction and use that Extra money Pay off debt Emergency fund or both.

    Stick to the plan, build on it, and be more aware of yourself personal finance.

    Once you’ve used any or all of the ideas on this list, keep looking for additional ways to save.

    “Try to look about five years into the future. Then where do you want to be? “Asks Goren.

    He suggests looking for people living this life now and trying to learn more about how they got to where they are. Then look back. In other words…

    “Where do you have to be in three years? In a year? In a month? Today? “He asks.” Break the journey down into small, achievable steps, and now do what you can. “

    At National Debt Relief, we pride ourselves on empowering people to regain their financial stability through our proven debt relief program. Contact us and speak to a financial professional who will work with you to find the best option to pay off your debt and help you achieve financial independence.


    Please enter your comment!
    Please enter your name here